NAFTA and Dairy
Let’s consider: Value of trade between Mexico, US and Canada $900b; between the US and Canada it is $700b with $2b surplus to the US
Of that $900b: EXPORTS Steel & Aluminum $16b Auto Sector $80b Diary $500m or 1/10 of 1% of the Canada Us two way trade.
40,000 dairy farmers in the US who enjoy US government subsidies through subsidies that equal about 73% of the farmers annual returns. In Canada, a different system is applied where the supply is managed and controlled among producers to ensure that everyone can survive. Different styles in 2 different countries but the US is directly and indirectly granting $22b to these 40 dairy farmers.
Given these ratio’s and the real value of trade between long standing partners, it seems obvious that a solution if the best route.